How Accidents And Violations Cause Changes In Your Insurance Premiums

In the event you are involved in a car accident, you may wonder how that occurrence will affect your car insurance premiums, many people are under the misconception their rates will automatically go up due to being involved. However, that misconception is not true in every case.

If you are not at fault for an accident, you most likely will see no change in your premium costs. Police reports are required for review in determining whether or not you or another driver is at fault for the occurrence of an accident. Once a thorough investigation has been made, you will continue to make the same premium payments you did before the accident.

The driver at fault for a vehicular collision will experience a change in insurance coverage costs. In most cases, the driver receiving a discount for being safe driver will lost the benefits of that discounts. In some policies, that could means up to a 20% rise in premiums. Fault in these cases will also be determined by investigation and police reports.

Keep in mind accidents without attached police reports will be investigated by insurance companies through eyewitness accounts and the statements of bother driving parties involved. Determination of fault will rest on the judgment of the company. Rate increases apply in the same way in these cases as they do in those coupled with police reports.

Bodily injuries caused by car accidents can help to increase premiums as well. Most companies do accept a police report as proof of these injuries. However, due to the fact many injuries, like those in the back and neck, do not show up the same day, some companies also require letters of experience from carriers as proof of injury. These are common when lawsuits become apparent for an accident.

Major violations include those accidents caused by drivers being under the influence of drugs and alcohol. These are volatile charges and will cause significant increases in premium costs. In most cases, the need for high risk coverage is required for a set number of years and is included in the punishment set for violators. SR-22 high risk policies are expensive and must be maintained in compliance with the law.

The cost of damages incurred in accident can also affect the price you pay for coverage. Inquire from your agent what the set limit is for damages before the premium costs are increased because of it. The amount for most companies is set at $750, but making sure about limits for your company is best.

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